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CRH PUBLIC LTD CO (CRH)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered record results: revenues $10.20B (+6% YoY), adjusted EBITDA $2.46B (+9% YoY), and diluted EPS $1.94 (+3% YoY), with EBITDA margin expanding 70 bps to 24.1% .
  • Results modestly beat Wall Street consensus: revenue $10.206B vs $10.148B consensus, adjusted EBITDA $2.449B vs $2.403B consensus, and EPS $1.94 vs $1.94 consensus; beats driven by positive pricing, acquisitions, and operational efficiencies (S&P Global) .*
  • Guidance raised: FY25 net income to $3.8–$3.9B (narrowed/raised mid), adjusted EBITDA to $7.5–$7.7B (raised low end), and EPS to $5.49–$5.72; capex unchanged at $2.8–$3.0B .
  • Strategic catalysts: agreement to acquire Eco Material Technologies for $2.1B (accelerates cementitious strategy), continuation of share buybacks ($0.8B YTD; new $0.3B tranche), and 6% dividend increase to $0.37/share .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion and price discipline: adjusted EBITDA margin up 70 bps YoY to 24.1%; International Solutions adjusted EBITDA up 23% with 170 bps margin expansion .
  • Segment breadth: Americas Materials (+2% revenue, +4% EBITDA), Americas Building (+2% revenue, +5% EBITDA), International (+13% revenue, +23% EBITDA) .
  • Management on strategic execution: “record second quarter performance… adjusted EBITDA… 9% increase… 70 basis points of margin expansion” (CEO) ; “$1.0B on 19 acquisitions YTD… strong pipeline” (CFO) .

What Went Wrong

  • Weather-related headwinds: stop-start paving season impacted activity; asphalt volumes -2% in Americas and -3% internationally; management highlighted weather disruption across regions .
  • Lower gains on asset sales vs prior year: gains on disposals fell to $29M vs $102M in Q2 2024, dampening GAAP growth .
  • Higher interest burden and net debt: interest expense rose to $200M (Q2 2024: $155M) and net debt increased to $13.4B, reflecting buybacks/dividends, M&A, and capex .

Financial Results

Sequential performance – last three quarters

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$8.87 $6.76 $10.21
Net Income ($USD Billions)$0.71 ($0.10) $1.33
Adjusted EBITDA ($USD Billions)$1.78 $0.50 $2.46
Diluted EPS ($USD)$1.02 ($0.15) $1.94

Year-over-year – Q2 2025 vs Q2 2024

MetricQ2 2024Q2 2025
Revenue ($USD Billions)$9.65 $10.21
Net Income ($USD Billions)$1.31 $1.33
Adjusted EBITDA ($USD Billions)$2.26 $2.46
Diluted EPS ($USD)$1.88 $1.94
Adjusted EBITDA Margin (%)23.4% 24.1%

Estimates comparison – Q2 2025

MetricConsensusActual
Revenue ($USD Billions)$10.15*$10.21
Adjusted EBITDA ($USD Billions)$2.40*$2.46
Diluted EPS ($USD)$1.94*$1.94

Values retrieved from S&P Global.*

Segment breakdown – Q2 2025 vs Q2 2024

SegmentRevenue Q2 2024 ($MM)Revenue Q2 2025 ($MM)EBITDA Q2 2024 ($MM)EBITDA Q2 2025 ($MM)Margin Q2 2024Margin Q2 2025
Americas Materials4,406 4,509 1,193 1,241 27.1% 27.5%
Americas Building2,116 2,159 476 501 22.5% 23.2%
International Solutions3,132 3,538 586 721 18.7% 20.4%

KPIs and operational metrics

KPIAmericas MaterialsInternational Solutions
Aggregates pricing YoY+4% +3%
Aggregates volumes YoY+5% +5%
Cement pricing YoY+2% +2%
Cement volumes YoY+1% +12%
Asphalt volumes YoY-2% -3%
Asphalt pricing YoYStable -4%
Ready-mixed concrete volumes YoY+6% +21%
Ready-mixed concrete pricing YoY+2% +9%

Other financial items and balance sheet markers:

  • Interest expense: $200M vs $155M in Q2 2024 .
  • Net Debt: $(13.406)B at June 30, 2025 .
  • Cash & equivalents: $2.876B; undrawn committed facilities: $4.2B .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Income ($USD Billions)FY 20253.7–4.1 3.8–3.9 Narrowed/raised mid
Adjusted EBITDA ($USD Billions)FY 20257.3–7.7 7.5–7.7 Raised low end
Diluted EPS ($USD)FY 2025$5.34–$5.80 $5.49–$5.72 Raised both ends modestly
Capital Expenditure ($USD Billions)FY 20252.8–3.0 2.8–3.0 Maintained
Interest expense, net ($USD Billions)FY 2025 (assumption)~0.6 ~0.6 Maintained
Effective tax rate (%)FY 2025 (assumption)~23% ~23% Maintained
Diluted average shares (mm)FY 2025 (assumption)~683 ~682 Lower

Dividends and buybacks:

  • Quarterly dividend $0.37/share (+6% YoY) .
  • $0.8B repurchases YTD; new $0.3B tranche through Nov 5, 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Infrastructure/IIJAPositive FY25 outlook; funding supportive Only ~1/3 of IIJA highway funds deployed; backlogs/margins ahead “Less than 40% deployed”; backlog strong; multi-year visibility Improving visibility
Reindustrialization/data centersSupportive non-res tailwinds Strong demand; bidding volumes/margins up Continued momentum; CRH involved in major projects Sustained
Residential marketsStabilization expected internationally; R&R resilient New-build subdued; R&R resilient R&R resilient; CE Europe green shoots; US new-build constrained by rates Mixed; gradual recovery internationally
Pricing momentumPositive pricing across segments Mid- to high-single-digit aggregates pricing; cement low-single-digit Aggregates +4% (mix-adjusted +7%); cement +2% Stable/positive
M&A pipeline & Eco Material40 deals in 2024; strong capacity 8 bolt-ons; ~$600M; pipeline strong 19 YTD; $1.0B; Eco Material $2.1B agreed; synergies/capacity Active
International/Adbri integrationGrowth from acquisitions; cost tailwinds Adbri performing well; synergies ahead of plan Continued strength; International EBITDA +23% Strengthening
Roads/winter fill & supply chain—Winter fill competitive advantage 90% publicly funded; winter fill locks margin; mix-adjusted pricing Positive margins

Management Commentary

  • CEO: “We are pleased to report a record second quarter performance… adjusted EBITDA… a 9% increase… and further 70 basis points of margin expansion” .
  • CFO: “We have invested approximately $1.0 billion on 19 value accretive acquisitions YTD… commenced a further quarterly $300 million buyback… dividend of $0.37 (+6% YoY)” .
  • CEO on Eco Material: “10 million tons of high-quality SCMs… increases our cementitious capacity ~60% to ~25 million tons… unique national distribution network” .
  • CEO on Roads: “Over 90% publicly funded… winter fill procurement program locks in margin on our order book” .

Q&A Highlights

  • Guidance drivers: Weather headwinds offset by strong underlying demand; H1 EBITDA up ~10%; backlogs/margins ahead; FY EBITDA growth double-digit at midpoint (excluding prior-year land sales) .
  • Aggregates/cement expectations: Full-year aggregates pricing mid-to-high single digits; volumes low-single-digit growth; cement volumes/pricing low single digits; mix-adjusted aggregates pricing +7% in Q2 .
  • Infrastructure bill outlook: Bipartisan support; next bill likely more concentrated on surface transportation; movement towards sustainable funding mechanism; IIJA deployment tracking over 7 years .
  • Outdoor Living and R&R: Resilient performance; strength in premixed products; R&R stable despite subdued new-build .
  • M&A/Eco Material valuation: Post-synergy multiple in high single digits; attractive returns and cash profile; robust bolt-on pipeline .

Estimates Context

  • Q2 2025 vs S&P Global consensus: revenue $10.206B vs $10.148B; adjusted EBITDA $2.46B vs $2.40B; EPS $1.94 vs $1.94 — modest, broad-based beats on revenue and EBITDA; EPS in line-to-slight beat.*
  • Forward quarters: consensus anticipates Q3 2025 revenue ~$11.14B and EPS ~$2.21; Q4 2025 revenue ~$9.46B and EPS ~$1.54 (S&P Global). With raised FY25 guidance and noted backlog strength, sell-side may adjust FY EBITDA/Net income higher and narrow ranges (S&P Global).*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Pricing power plus mix management and cost discipline are sustaining margin expansion across all segments despite weather headwinds .
  • International is a clear outperformer with strong acquisition integration (Adbri) and pricing-led gains; expect continued margin progression .
  • Eco Material acquisition is a strategic step-change in North American cementitious capacity and distribution; anticipate synergy realization and internal consumption uplift across ready-mix/concrete businesses .
  • Balance sheet remains robust with ample liquidity ($2.9B cash; $4.2B undrawn facilities); net debt higher due to capital returns and growth investments — manageable given investment-grade targets .
  • Capital returns remain a core pillar (6% dividend hike; ongoing $0.3B quarterly buybacks); expect continued share count reduction supporting EPS leverage .
  • Near-term trading: watch weather normalization and July activity rebound cited by management; backlog/margin commentary supports Q3 seasonal peak strength .
  • Medium-term thesis: secular tailwinds (IIJA deployment, reindustrialization/data centers), connected portfolio advantages (roads/water/energy infrastructure), and disciplined M&A underpin sustained double-digit EBITDA growth potential .

Appendix: Additional Details

  • Other financial items: depreciation/depletion/amortization $528M; interest income $30M; other nonoperating expense $(9)M .
  • Dividend timetable: Ex-date Aug 22, 2025; payment Sep 24, 2025 .
  • Share buyback tranche with BNPP: up to $0.3B between Aug 7 and Nov 5, 2025 .